In November last year, South African vehicle owners were paying, on average, R2 515 more a month to keep their cars on the road than in 2018, says WesBank in its newest mobility calculator.
WesBank uses an average entry-level vehicle (with a price tag of R250 000) that travels roughly 2 500 km a month to calculate these indicative costs.
The newest mobility calculator shows that the monthly cost of vehicle ownership, comprising vehicle finance repayment instalments, fuel, insurance and maintenance costs, had increased to R10 165 in November, up from R7 716 in 2021, owing mostly to increases in fuel costs and ongoing interest rate hikes.
This number reflects an increase of 32% year-on-year.
In 2022, vehicle instalments and fuel spend combined remained the largest portion of the cost basket, accounting for 81% of the monthly spend. Fuel spend accounted for 39% of the total on its own, with the vehicle instalment cost at 42%.
The figure to November 2022 indicated that the average monthly fuel spend, at R3 950, was almost on a par with the vehicle instalment rate at R4 313.
The monthly insurance cost of R1 409 made up 14% of the total, with running costs a month accounting for the final 5%, at R493.
WesBank says the latest numbers vary quite substantially from the 2018 mobility cost basket, when fuel spend accounted for only 36% of the total, at R2 765, while the average vehicle instalment was 44%, at R3 383.
“As a result of vehicle price inflation over the past year and other industry constraints, consumers . . . spent more on average for new and used vehicles in 2022, and this trend is likely to continue into 2023,” says WesBank marketing and communication head Lebogang Gaoaketse.
In October, the average value of a new vehicle financed through WesBank was R388 338 compared with R368 696 in October 2021.
This reflects a 5% year-on-year average price increase for new vehicles.
“Prospective vehicle owners should take a holistic view when planning a car purchase to ensure they don’t overextend themselves, and right-size their spend to fit their budget,” notes Gaoaketse.
“This includes making allowances for increases in costs down the line, such as a higher interest rate or a further increase in the fuel price, as we are currently experiencing.
“The smartest move is to make provision for these rising costs over the duration of the finance contract.